_____ are unit cost reductions associated with a large scale of output.

Question

Quizplus · Accepted Answer

Economies of scale refer to the unit cost reductions that occur as a result of a large scale of output. When a firm can produce goods or services at a larger scale, it can take advantage of cost savings in areas such as purchasing, production, and distribution. This results in lower average costs per unit, making the firm more competitive and profitable. Therefore, economies of scale are an important factor in determining a firm's ability to compete in the marketplace.

_____ Are Unit Cost Reductions Associated with a Large Scale